The postentry performance of business groups’ new venture affiliates

Chien-Nan Chen, Chengli Tien and Bernard Gan
Additional contact information
Chien-Nan Chen: Department of Business Administration, National Dong Hwa University, Hualien Taiwan
Chengli Tien: Department of East Asian Studies, National Taiwan Normal University, Taipei, Taiwan
Bernard Gan: Department of International Business and Asian Studies, Griffith Business School, Griffith University, Nathan, QLD, Australia

Australian Journal of Management, 2019, vol. 44, issue 2, 325-343

Abstract: Using resource dependence theory, this study examines the determinants of firm performance among business groups’ new venture affiliates using a sample of 1512 new venture affiliates associated with 104 large-sized business groups in Taiwan. The empirical findings reveal that improved affiliate postentry performance is linked to the relative size of a business group’s new venture affiliate and the level of autonomy inherent in decision-making. Furthermore, when the product market of a new venture affiliate is resource-related to its affiliated business group’s main business, this affiliate may benefit from resource relatedness with an improved return on equity. JEL Classification : M10, M16, M38

Keywords: Business group affiliate; new venture; postentry performance; resource dependence (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/0312896218792965 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:ausman:v:44:y:2019:i:2:p:325-343

DOI: 10.1177/0312896218792965

Access Statistics for this article

More articles in Australian Journal of Management from Australian School of Business
Bibliographic data for series maintained by SAGE Publications ().